Kirsty Winter, general manager at leading marketing data supplier Insight Data, summarises company insolvencies across the UK fenestration industry in 2024.

Insight Data supplies the UK’s most accurate marketing data to clients in the fenestration, glazing and building industry who get better results from their sales and marketing.

As part of our operation, we track and collate monthly insolvency figures relating to the sectors we operate in. Of course, even in the best trading condition there will always be firms who go to the wall, but we do find that collating month-by-month figures into a yearly round-up paints an accurate picture of how the UK economy is faring generally.

As we look back at 2024, it’s clear the construction and fenestration sectors have endured one of their most challenging years in recent memory. The numbers of insolvencies in the sectors we focus on (Architects, Main Contractors, Local Builders, Builders’ Merchants, and Fabricators and Installers) tell a sobering story, but behind every statistic lies the human impact of business.

The year opened on particularly shaky ground, with January recording 302 insolvencies across all sectors. By March, these numbers had shot up to an alarming 382 cases – the kind of figures that keep industry leaders awake at night. While spring brought some welcome relief, with April’s numbers dropping to 219, the underlying pressures never truly eased.

Digging deeper into the statistics, it was local builders who bore the brunt of 2024’s difficulties, with monthly casualties regularly exceeding 100 firms. The fenestration sector rode its own rollercoaster, seeing between 55 and 115 installers and fabricators close their doors each month. Even traditionally stable architectural practices weren’t immune, with a steady stream of firms facing closure throughout the year.

What was the root cause of these on-going difficulties? As ever, it’s rarely one catastrophic event that causes economic hardship; instead, several factors combined to create 2024’s challenging environment. Rising interest rates made borrowing more expensive just as material costs were soaring.

Add in sky-high energy prices, persistent supply chain headaches, the cost of living crisis, ongoing Brexit-related trauma and a Conservative government on its last legs, and it’s little wonder many firms struggled to keep their heads above water.

However, the summer’s Labour victory brought fresh perspective and ambitious plans – notably the pledge to build 1.5 million new homes over five years. Yet their autumn financial statement landed like a cold shower, introducing measures that many businesses fear could make 2025 even tougher. Higher employer National Insurance contributions, increased minimum wage requirements and reduced business rate relief all loom large on the horizon.

The year’s final month brought unexpected respite, with insolvency rates dropping across most sectors. However, this might be more about Christmas sentiment than genuine recovery – it might be the case that many firms decided to postpone difficult decisions until after the festive period. January 2025’s results may well bear this out.

Looking ahead to 2025

As we peer into 2025, the landscape appears decidedly mixed. KPMG’s optimistic forecast of 1.7% GDP growth offers hope, but April’s incoming financial changes could prove a significant hurdle for many businesses. Add in uncertainty around international trade relations and a new, potentially hostile US President, and already we’re seeing significant threats to growth.

Success in 2025 will require careful navigation of these challenges. Firms that can balance the opportunities presented by increased housing demand against rising operational costs will be best positioned to thrive. The key will be adaptability, strategic planning and maintaining strong cash flow management.

The construction and fenestration sectors have always been resilient, adapting to changing times and circumstances. While 2025 promises its share of challenges, those who can read the market, manage their resources wisely and seize new opportunities may find themselves not just surviving, but thriving in this evolving landscape.

For now, the industry holds its breath as we approach April’s watershed moment, when new financial measures take effect. How businesses respond to these changes may well define the sector’s story for the rest of 2025 and beyond.

This year could turn out to be a pivotal one for world economies, and as it unfolds we’ll keep you up to date with the latest happenings from our sectors. Insight Data provides our industry with the insights needed to navigate these challenging times. Our data is designed to empower businesses, helping them make informed decisions and build resilience against economic demands.